President Muhammadu Buhari has presented the 2021 budget estimate to a joint session of the National Assembly.
He explained that the total aggregate revenue projected for the 2021 budget was ₦7.86 trillion with a deficit of ₦5.2 trillion, representing 3.4 per cent of the GDP.
The proposed expenditure is put at ₦13.08 trillion with a crude oil benchmark price of $40 per barrel and daily oil production estimate of 1.86 million barrels (inclusive of condensates of 300,000 to 400,000 barrels per day).
This also includes ₦1.35 trillion spending by Government Owned Enterprises and Grants and Aid funded expenditure of ₦354.85 billion.
The budget contains recurrent expenditure of ₦5.65 trillion, personnel cost of ₦3.76 trillion and debt service of ₦3.12 trillion.
Statutory transfers has been put at ₦484.4 billion while Pension, Gratuities and Retirees Benefits was put at ₦501.19 billion and Overhead cost at ₦625.50 billion.
A projected inflation rate of 11.95 per cent and GDP growth rate of 3.00 per cent was considered.
The president budgeted ₦128 billion for the National Assembly and ₦63.5 billion for the Niger Delta Development Commission.
Based on the foregoing fiscal assumptions and parameters, total federally distributable revenue is estimated at ₦8.433 trillion in 2021.
Total revenue available to fund the 2021 Federal Budget is estimated at ₦7.886 trillion. This includes Grants and Aid of ₦354.85 billion as well as the revenues of 60 Government-Owned Enterprises.
The deficit, Mr Buhari said, will be financed mainly by new borrowings totalling ₦4.28 trillion, ₦205.15 billion from Privatisation Proceeds and ₦709.69 billion in drawdowns on multilateral and bilateral loans secured for specific projects and programmes.
Oil revenue is projected at ₦2.01 trillion. Non-oil revenue is estimated at ₦1.49 trillion.
Other allocations include ₦29.7 billion for the North East Development Commission, ₦110 billion for the Nigerian Judicial Council, ₦70.05 billion for UBEC and ₦40 billion for the electoral umpire, INEC.
The president also approved ₦64billion for the Niger Delta Development Commission (NDDC) amidst financial scandal rocking the commission.
Mr Buhari said the 2021 budget is titled ‘Economic Recovery and Resilience’ with the aim of promoting economic diversity and enhancing social inclusion.
Others are Public Complaints Commission – ₦5.20 billion; Human Rights Commission – ₦3.00 billion; and Basic Health Care Provision Fund – ₦35.03 billion.
President Buhari also said in compliance with the Fiscal Responsibility Act 2007, all beneficiaries of Statutory Transfers will be required to provide the Budget Office of the Federation with periodic reports on the allocation and expenditure of funds for inclusion in the quarterly Budget Implementation Report.
The lawmakers are expected to receive the Finance Bill which will contain details of the budget for consideration and passage.